Enedis - company overview · Company presentation of Enedis and its position - 22/09/2017. 31...

Enedis - company overview

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What is Enedis?

Subsidiary of the EDF Group Independent DSO

Company presentation of Enedis and its position - 22/09/2017

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A few general information

• TSO (63, 90, 225, 400kV)

• The French distribution network is owned by local authorities

• Autorités concédantes / concessionnaire

• Enedis: 95% of the French distribution networkEnedis


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The French electric systems and operators

TSO DSO


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Enedis manages the french distribution network Enedis


Generation& Trading

Transport

Distribution

Supply

Customers

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Enedis manages the French distribution network

• 38,000 Employees

• 35 millions Customers

• 1.3 million km of network

• 3 billion € investment

• 11 million field-operations


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Enedis’s governance


Supervisory Board15 members appointed or

elected for five years

1 Government Representativeappointed by decree

1 representant of local/regionalauthorities appointed by decree

5 Employee representativeselected by employees

8 Membersappointed by the General

Assembly

EXECUTIVE COMMITTEE

President of the executive commiteeappointed by the Supervisory Board

25 Direction-regions

38 000 employees

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Organization is based on an operation competency scheme


Specialised units in region

25 regional units

-- Network & Assets units (ACR, BEX, 7CAD…)

-- Territory Direction (département)

24 Customers Suppliers

8 Support Logistic Units

Five National UnitsSupply chain, Account (UCN), Purchase (UOA), IT (UOI), Training (UOF)

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Electricity system and supervision

1- The French electricity market

2 - Enedis relationships with the French State

3 - The energy regulation commission (CRE)

4 - Tariffs principles

5 - Electricity distribution concessions

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The French electricity market

01

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Electricity distribution in France


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Distribution networks

1st DSO in size in EuropeEnedis is an unbundled company:

Since 1st January 2008

MV 610 000 km

LV 690 000 km

It is Mature with a moderate growth rate:

Below 2%

Enedis does not own the network:

Assets are property of local authorities

Excluding primary substations


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Electricity distribution in France


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The rules of the game

Open to

CompetitionREGULATED Open to

Competition


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Key Dates

1946 EDF200 private power companies have merged to rebuild electricity system

after WW2

2004 RTE

Creation of a specific legal structure and EDF Group subsidiary to manage

transmission system

2005 EDF SA EDF privatisation

2008 EnedisCreation of a specific legal structure and

EDF Group subsidiary to manage distribution


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The opening of the electricity market

Number of sites

Market share

1999Major industrial customers (over

16 GWh per year)1300 30%

2003Average size industrial customers

(over 7 GWh)3500 37%

2004 All professional customers 4,5 million 70%

2007 All private customers 30 million 100%


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BtoB only

A market open to competition


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Enedis’s relationships with the French State

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The French State : major shareholder

Relationship with Ministries

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The French State : major shareholder

84%

State

Europe institutional (excludingFrance)Woldwide institutional (excludingEurope)France institutional

Individual shareholding

Shareholders employees

Self shareholding


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Relationship with Ministries• Enedis has a small team that coordinates relationships with ministries. The staff of those ministries are in charge of preparing laws and decrees. •Before being published, decisions are discussed with experts working for Enedis. A wide variety of topics are discussed : smart grids, smart metering…


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Relationship with Ministries

Enedis has developed relationships with all ministries making decisions related to its activity


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The energy regulation commission (CRE)

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What is CRE?

How is it governed ?

Regulator’s Missions

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The energy regulation commission (CRE)

Energy markets


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How is it governed ?

Commissioners must be appointed according to their specific skills regarding :

• Protection of personal data

• Consumer protection and help for vulnerable consumers

• Local public services

• Renewable energy and energy conservation

• Non interconnected-zones (Corsica and overseas territories)


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The Commission


Jean-FrançoisCARENCO

President Appointed by the President of the Republic for a term of 6 years (ending February 2023).

Christine CHAUVET

Commissioner Appointed by the President of the Senate for a term of 6 years (ending January 2021).

Hélène GASSIN

Commissioner Appointed by the President of the Republic for a term of 6 years (ending March 2019).

Jean-Pierre SOTURA

Commissioner Appointed by the President of the Republic for a term of 6 years (ending March 2019).

Jean-Laurent LASTELLE

Commissioner Appointed by the president of the National Assembly for a term of 6 years (ending June 2023).

CatherineEDWIGE

Commissioner Appointed on proposal of the Ministry of the overseas territories for 6 years (ending February 2023).

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Organization : committee for dispute settlement and sanctions

► This committee was established by the law of 7 December 2006. It composed of 4 members : two states councillors appointed by the vice-president of the council of state, and two councillors appointed by the chief justice.

They are appointed for 6 years and their contract can not be renewed.

► 98% of disputes are related to network access conditions.


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Regulator’s Missions

Regulating electricity networks Regulating the electricity market


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Regulating electricity networks

Producer

TSO

DSO

Supply

Guaranteeing the right of access to public electricity grids

Ensuring the independence of system operators


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French network tariffs

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Principles

Incentive regulation

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French network tariffs – Principles

CRE sets the tariffs for the use of public electricity grids, and related services to the ministers. Government can stop new tariffs from being implemented if they do not comply with the State energy policy..。

Two contractual schemes exists• Client paying network access through its supplier (99% of clients)Client paying network access directly to Enedis, generation and supply to its supplier (1% of clients)

Guiding principles are the following :• The network tariff covers the costs of transmission and distribution

• It is unique on the French territory : tariff has no geographical

• It is based on a postage stamp rate : tariff is not distance-related

• It applies to all network users, except generators

• It does not include connection charges and extra services which are billed separately


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French networks tariffs – principles

Fixed for:

4 years

Increase every years with :

Inflation

Costs include

• Network

• Metering

• Overheads

Tariffs structure includes :

• Flat rate• Variable Feeddepending on consumption

Price can be differentiated

according to time or season

“Regulation account for costs and

incomes”

CRCP

such costs correspond to those of an

efficient network operator


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French network tariffs – Incentive regulation

Transmission fees, Purchase of network losses, Outsourced expenses, Fees to local authorities, Taxes, ManpowerEncompassed Costs

Capital charges

Incentive Regulation

Regulated revenueAssessed Quantities

(kVA, kWh)Tariffs

+

+/-

=/ =

Regulated Asset Basis X 2,6%

+Owned Regulated Asset Basis X 4,1%

+Asset depreciation & Reserve for renewal

+Debt interest (if any) X 3,1%


The aim of incentive regulation is to ensure DSOs offers the best service at the lowest cost.

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French network tariffs – Incentive regulation

Quality of service Efficiency Quality of distribution


The aim of incentive regulation is to ensure DSOs offers the best service at the lowest cost.

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Electricity distribution concessions

05

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Electricity distribution concessions

Electricity distr ibution is based on a concession

system

Concessions are granted either by towns/cities, or

groups of towns

+ 525 electricity distribution concession


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EDF group

Non-state players

Institutions


Retrouvez-nous sur Internet

enedis.fr enedis.officiel @enedis enedis.officiel

Enedis - Tour Enedis, 34 place des Corolles - 92079 Paris La Défense - enedis.frSA à directoire et à conseil de surveillance au capital de 270 037 000 euros - R.C.S. Nanterre 444 608 442

Direction de la Régulation et des Affaires Juridiques

[email protected]

Enedis - company overview · Company presentation of Enedis and its position - 22/09/2017. 31...

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